Wednesday, 17 Oct 2018
Business

When the number of owners influences the rate of unemployment


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When the number of owners affects the unemployment rate
PHILIPPE HUGUEN / AFP

A study by INSEE shows the link between the density of homeowners at the local level and the unemployment rate in the same place. An unexpected consequence of access to property.

The more landowners there are in a demarcated area, the higher the unemployment rate. The correlation is rather unexpected. Friday, April 20th, Le Figaro relays a study by INSEE that the higher the density of homeowners in a geographic area, the more unemployment increases in that area.

“If the status of owner is generally associated with a better situation on the labor market, an increase in the density of homeowners at the local level yet goes hand in hand with a rise in the unemployment rate,” says INSEE. Precisely, a rise in the density of 10 points would be associated with friction on the labor market increasing by about 1.3 point the local unemployment rate, reports INSEE. Before qualifying: “The resultant of the two effects would nevertheless be of moderate magnitude, up to 0.6 point on local unemployment”.

Read also Eurozone: unemployment rate falls as expected in February

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